TOKYO (Reuters) – Asian shares jumped on Thursday to a three-month high and the dollar fell broadly after the Federal Reserve cut interest rates as expected and U.S. Treasury yields declined.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.68% to the highest since July 30. Hong Kong shares rose 1.16%, while Japan’s Nikkei stock index rose 0.2%.
US - Treasury - Yields - Asia - Rate
U.S. Treasury yields slipped in Asia after the rate cut, but Fed Chairman Jerome Powell signalled additional trims are unlikely because there are several areas of strength in the U.S. economy.
The yen held onto gains versus the dollar after the Bank of Japan keep its ultra-easy monetary policy in place as expected and changed its forward guidance to more clearly signal the future chance of a rate cut.
Debate - Fed - BOJ - Struggle - Banks
Debate at the Fed and the BOJ highlights the struggle that many central banks are facing.
The U.S.-China trade war and Britain’s divorce from the European Union have increased uncertainty, but central banks are somewhat reluctant to ease policy aggressively because interest rates are already very low in many major economies.
Thing - Stocks - Fed - Tsutomu - Soma
“The biggest thing that stands out is stocks look stronger after the Fed,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities in Tokyo.
“Risks like U.S.-China or Brexit haven’t been resolved completely, but the markets are starting to look beyond these risks.”
US - Stock - Futures - % - Thursday
U.S. stock futures edged 0.01% higher on Thursday in Asia after the S&P 500 rose 0.33% to close at a record high on Wednesday for the second time in three trading sessions.
A positive mood on Wall Street carried over to Asian equities, except for Australian shares, which fell 0.51% after weak earnings from Australia and New Zealand Banking Group.
Fed - Policy - Rate - % - -1
The Fed lowered its policy rate to 1.50%-1.75%, but dropped a previous reference in...
Wake Up To Breaking News!